ISLAMABAD: The federal government has directed National Transmission and Despatch Company (NTDC) to complete transmission line for interconnection of power evacuation of 660 MW Lucky Electric Coal Fired Power Plant (LEPCL) as per given timelines, as there was no legal or regulatory restraining order in favour of Fauji Oil Terminal & Distribution Company (FOTCO) against implementation of the project, well-informed sources told Business Recorder.
NTDC, a government entity, is currently engaged in the construction of 500 kV transmission line for interconnection for power evacuation of 660 MW LEPCL. The completion date of transmission interconnection for the LEPCL power plant was July 31, 2021.
However, due to delay in completion of the interconnection, NTDC is liable to pay liquidated damages (to be paid to LEPCL) at the rate of Rs. 61,721,352/- per day for the first 60 days and thereafter at the rate of Rs. 72,554,328/- per day, which would in turn have an impact on consumer tariff or government exchequer.
LEPCL plant is to be connected with Matiari HVDC convertor station from where the power will be dispatched via Matiari-Lahore HVDC transmission line to the load centers. The Matiari-Lahore HVDC transmission line, a CPEC project, envisages to carry 4000 MW of power. The COD of this HVDC transmission system is scheduled on September 01, 2021 and it requires availability of 4000 MW of power at its Matiari terminal and 660 MW power to be supplied by LEPCL is a component of this 4000 MW.
From September 01, 2021 NTDC/GoP will become liable to pay full transmission service payment of approximately Rs. 4.2 billion to the PMLTC for transmission load of 4000 MW through the HVDC transmission line regardless if the full transmission capacity is utilized or not.
As such, if the transmission interconnection carrying 660 MW from LEPCL to the Matiari convertor station is not completed and made operational, then NTDC may face a monthly estimated loss of Rs. 683,147,520 on account of under-utilization of transmission of HVDC line and these losses are over and above the LDs to be paid to LEPCL.
Consortium required to deliver system to support energy goals
The length of the 500-kV transmission line for interconnection to LEPCL plant is 12 km for which 39 towers will be installed. Right of Way (RoW) of the transmission line traverses through land owned by following entities: (i) Government of Sindh (05 towers) - RoW cleared; (ii) Port Qasim Authority (10 towers) – RoW cleared; and (iii) Pakistan Steel Mills (24 Towers) - RoW cleared.
Accordingly, transmission line would have been completed by October 01, 2020. However, construction of the transmission line is being blocked by Fauji Oil Terminal & Distribution Company (FOTCO). Row of the transmission line is in Port Qasim area and does not cross any land owned/leased by FOTCO which is not allowing construction of the line within the corridor of the road claiming that their underground oil lines are passing through the area and claiming that High-Tension lines passing above it would be a hazard.
When FOTCO laid their lines, they were crossing the KE existing 220 kV grid and KE 220 kV transmission line. At that time FOTCO did not get any clearance or raised any safety flags. Had it been the case, no oil line would be crossing electric overhead lines.
The detail background of the events and interactions of NTDC with FOTOC, furnished by NTDC in its letter of August 3, 2021 is as follows: NTDC team and Chief Operating Office of FOTCO carried a joint site visit on September 09, 2020. Accordingly, a revised route (2nd route) was developed along boundary of FOTCO, as proposed by FOTCO. The revised route (2nd route), finalized after consultation with FOTCO, was formally submitted to FOTCO for issuance of NOC but FOTCO refused again.
To resolve the matter Power Division convened a meeting on November 03, 2020 and during the meeting it was agreed that NTDC would explore the possibility of avoiding FOTCO’s land altogether. Accordingly, a fresh survey was carried out and it was concluded that there is no other available option to avoid FOTCO’s land except if ROW of an existing 220 kV transmission line operated by K-Electric is vacated and utilized for this 500-kV transmission line. A 220 kV already exists in this area even before construction of FOTCO’s facilities and since FOTCO has no issue with this EHV line, it should have no issue with NTDC’s EHV line occupying the same space. With this arrangement, not a single tower or conductor would pass through FOTCO’s land. NTDC has already obtained NOCs from Port Qasim Authority and K-Electric for this arrangement.
Meanwhile, FOTCO filed suit on March 29, 2020 against NTDC in Sindh High Court to stop the line construction and managed to obtain stay order however, on NTDC’s response, the Honorable court dismissed the stay order on May 19, 2021.
After dismissal of stay order, NTDC mobilized contractors for site activities for the transmission lines. However, FOTCO has illegally stopped the work outside their area through their security staff and by calling Rangers on site, contractors are sitting idle at site.
“I have personally visited the project site on July 3, 2021 where FOTCO is hindering the works and telephonically discussed the matter with MD FOTCO who gave the impression that FOTCO will not allow construction in the area which is not even in their jurisdiction. In the present situation, NTDC needs support of Pakistan Rangers to continue work, otherwise transmission line cannot be completed,” said, Muhammad Ayub a senior officer of NTDC.
Power Division apprehended that if the situation persists, it will not be possible for NTDC to complete the transmission line and resultantly huge financial LDs and losses amounting to Rs. 2.5 billion per month will be borne by national exchequer, and COD of Pakistan’s large CPEC project, ie, Matiari-Lahore HVDC transmission line will also be affected.
During the ensuing discussion, Ministry of Interior argued that the issue between Fauji Oil Terminal - Sr Distribution Company (FOTCO) and Lucky Electric Power Company Limited (LEPCL) - should be resolved by the Power Division through convening a meeting of all stakeholders. The Chairman, CCoE observed that there was no legal hindrance in implementation the project, therefore, the Power Division/NTDC should proceed ahead with the project and hindrance in this regard by any agency should be treated as a criminal act.
A high level meeting noted that there was no legal or regulatory restraining order against implementation of the project. The meeting, therefore, directed the Power Division/NTDC to proceed ahead with the project as per the given timelines.
Copyright Business Recorder, 2021
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